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http://dx.doi.org/10.15207/JKCS.2017.8.11.363

The Effect of Management Earnings Forecasts on Future Earnings Quality  

Kim, Seon-Gu (School of Business Adminstration in Hansei University)
Publication Information
Journal of the Korea Convergence Society / v.8, no.11, 2017 , pp. 363-372 More about this Journal
Abstract
This study analyzed how management earnings forecasts would have an effect on future earnings quality. The analysis period of study was from 2003 till 2009 (ofrom 2004 till 2011) based on variables of interest (dependent variables) and the annual data from a total of 475 companies that publicly announced manager's operating earnings forecasts among securities listing companies were used for analysis. As a result, first, it appeared that the more optimistic the manager's earnings forecasts were for the current term, the lower the future earnings quality was. Second, it was found that the lower the accuracy of the manager's earnings forecasts was for the current term, the lower the future earnings quality was. Such findings suggest that management earnings forecasts will be used for determining future earnings quality.
Keywords
Management earnings forecasts; Future earnings quality; Optimistic earnings forecast bias; Accuracy of earnings forecast; Fair disclosure regulations; Convergence;
Citations & Related Records
Times Cited By KSCI : 3  (Citation Analysis)
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